The impact of record NHS waiting lists has left no parts of the country unscathed.
Even high net worth individuals (HNWI) no longer assume they can be guaranteed good health, so are increasingly seeking more urgent care in their insurance coverage.
And where protection is concerned, advisers note legislative changes on the horizon could have positive and negative effects on the market.
Issues accessing underwriting and medical reports mean some firms are introducing their own propositions to tackle these problems head on.
Impact of record NHS wait times
The number of people on the NHS England waiting list for treatment topped 7.4 million for the first time in April, while the number of people who are economically inactive due to long-term sickness in the UK has rocketed since the pandemic.
You would be forgiven for thinking these trends are not a concern for the wealthiest in the population – but you would be wrong.
“As we have seen the NHS come under more pressure than ever in recent years, HNWIs have a growing desire for urgent care support as part of their private medical insurance (PMI) plans,” Lisa Parker, health and wellbeing lead at Lockton People Solutions, tells Health & Protection.
“They are also looking for a greater breadth of cover within health benefits packages, including fertility and maternity support, as well as pre-emptive care such as in-depth health screens and an assessment of future health risks.”
According to Parker as we emerge from the pandemic into an environment where the NHS is under greater pressure, there is a general feeling among HNWIs that they can no longer assume good health.
“Given the World Health Organization (WHO) has recently declared an end to Covid as a global health emergency, individuals may begin to feel more optimistic,” Parker continues.
“At the same time, advancements in technology mean more in-depth screening is readily available, so demand for that service has grown. Having better screening capabilities as an added option generally makes a benefits package more appealing.”
Lifetime Allowance removal
For those using group or employer-based life schemes for this cohort there could be mixed results due to the removal of the Lifetime Allowance announced in the chancellor’s Spring Budget.
“If the removal of the Lifetime Allowance goes ahead, group life insurance provisions could be simplified and more accessible to insureds,” Lockton’s Parker highlights.
“However it could become a challenge to reach suitable maximum cover limits,” he continues.
“In the PMI space, some restrictions in insured solutions mean companies are exploring alternative funding methods for the provision of benefits and servicing requirements with standalone arrangements.
“We continue to collaborate with insurers to make sure our clients can access the most suitable offerings, and ensure our clients are in possession of all the information they need as external factors change.”
Taking a balanced approach
But meeting the demands for HNWIs requires a balanced approach, according to Joe Thomas, managing director at April International UK.
“On the one hand, the personalised touch is vital for this market,” Thomas explains.
“But equally, a large proportion are often tech-savvy, especially the growing segment of HNWIs such as millennials and Gen Z.
“So they may look for simplified digital experiences, such as online medical consultations that could fit around their busy lives and travel schedules, especially as many clients are often globally mobile.”
Evolving underwriting
Sesame Bankhall Group head of protection Emma Thomson agrees and notes a flexible approach is becoming equally important when it comes to underwriting in the protection market.
She explains that insurers are evolving how they underwrite to reduce how much medical evidence they obtain, and advisers are often taking steps to bring underwriting into their own control before even submitting applications.
“With additional pressures put on firms who provide medical screening services due to lack of available nurses, this problem is set to worsen and will especially hit HNW clients,” Thomson says.
“As a result of issues with underwriting, some adviser firms who specialise in supporting HNWI have introduced their own in-house underwriting proposition to give them more control of the process and minimise problems getting HNW clients underwritten.
“Through working with in-house underwriters, they obtain medical evidence themselves and send this to insurers to ascertain terms before even submitting an application. It’s likely we’ll see more HNW specialists looking at this business model to help provide their clients with a better experience.”
And ultimately the role of the adviser is key when dealing with these time poor individuals.
“HNW clients often have high service expectations but are time poor, so it’s important for advisers to offer not only an enhanced service but as efficiently as possible,” Thomson continues.
“While HNW clients have typically been able to weather financial challenges better than other consumer groups, there’s still a very real need to ensure they are financially protected and that they fully understand all the benefits available with their cover.”
Encouraging electronic records
And Julie Godley, director of intermediary at Legal & General Retail, explains technology advancements also provide opportunities for services to be faster and more personalised when collecting medical data.
“In recent years we have seen a real growth in the number of medical practices utilising technology to return electronic health records instead of paper GP reports,” Godley says.
“This allows the records to be received by the insurer much quicker than traditional methods and is also much more secure.
“Over 50% of Legal & General reports are now received electronically and we continue to work with the software providers and the GPs to keep increasing that percentage.”
